What is Enterprise Resource Planning?

Enterprise Resource Planning (ERP) is a process that takes something technologically complicated and simplifies its application. It is a necessary component of survival and success for many companies trying to navigate through our highly technical world—even those that might not be in the tech industry.

BASIC BUSINESS

Whatever type of système de gestion d’entrepôt Meade Willisbusiness you run, if you want to succeed you are going to need to integrate many different processes. From inventory management to order management to accounts payable to human resources, there are so many things you have to keep in balance. Businesses from yesteryear would have hired people to work in these departments, as well as heads to lead these departments. That, of course, has been found to be quite expensive and we can save a lot of money by simply switching over to ERP basics.

ERP BASICS

At the very core, ERP systems use a shared database of info that supports several functions (as described above) that are accessed by various parts of a business or a partnership. For one, your accounts payable and your sales departments could both rely on the same ERP system to perform their daily functions. Other departments, though, might rely on different ERP within the same network.

But in addition ERP can provide some much-needed synchronicity between all of these departments. After all, the more people you employ, the more risk there is for human error. Plus, humans cost more than computers.

ERP: A Brief History

And, just in case you are probably wondering, Enterprise Resource Planning (ERP) was first coined by the Gartner company in the 1990s even though it was in probably in use since the 1960s. At the time, of course, this was a very new concept and was mostly applied just to inventory management and other control mechanisms, and was solely used in the manufacturing sector. ERP was a common jargon among software engineers who were involved with creating the early programs for monitoring inventory, to reconcile balance sheets, and to report various business processes.

These processes evolved, of course, through the 1970s—mostly as Material Requirements Planning—and then the 1980s and 1990s. Today, of course, ERPs are a normal part of business in a wide variety of industries.